In other words, the institution sounds a little bit like Bell Labs, the research arm of AT&T that in the 20th century made major breakthroughs in physics, electronics and computer science. That said, Shaughnessy doesn’t see Samsung’s investments in such research really paying off until it learns not to stretch itself so thin with multiple product launches every year.

“While it is now a formidable innovator, its relentless launch program leaves it with considerable inventory and stretches the company,” he writes. “The big issue is whether long-term ecosystem building will bring Samsung the customer loyalty and service revenues it needs as we pass beyond the peak of high-end smartphone buying.”